A 27-year-old Bangladeshi immigrant inspired by Islamic State internet propaganda set off a pipe bomb strapped to his body as he blended with rush-hour commuters in one of New York City’s busiest transit hubs Monday morning, authorities said, but the explosive fizzled, burning him and injuring three others.

Akayed Ullah, an electrical worker, detonated the low-tech device at about 7:20 a.m. in a crowded passageway that connects the massive Port Authority Bus Terminal and Manhattan’s crowded Times Square subway station, police...

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